I wonder if Mr. Michel will take unpaid leave, as well? While the furlough might not sit well with employees, I'm sure they are still thankful to have jobs.
Club Car announced this afternoon that it is implementing a plan that will require salaried and some hourly employees to take two weeks of unpaid furlough before the end of the year.
“We have continued to see the effects of the global economic downturn, and as a result we have considered several approaches to reducing costs,” said Gary Michel, Club Car’s CEO.
“After assessing the situation it has been decided that we will institute a mandatory furlough program as a way to generate the necessary cost savings with as little impact as possible on our employees and our business," he said.
The furlough plan will affect 400 salary workers at the Evans facility, and 50 hourly workers, the company said this afternoon.
Affected employees will be required to take one week of unpaid leave in the fall and then in the winter.
Columbia County's largest manufacturing employer laid off 5 percent of its work force in April in response to weak market conditions.
Club Car, a division of Ingersoll Rand, employs 900 people at its facilities in Evans and an additional 40 globally.
The furloughs will not affect the global employees, said Susan Jaramillo, communications director for Ingersoll Rand’s Industrial Technologies Sector.
“Despite our previous staffing and cost reductions, we must continue to be very cautious and mindful of our overall cost structure,” Mr. Michel said. “At the same time we must maintain critical and needed levels of resources in order to concentrate and respond to the needs of our customers both now and in the future.”
Club Car is also extending by a week its annually summer shut down, closing the facility on Washington Road for three weeks in July.
Mr. Michel said the additional week is in response to the economy, but the shut down is normally a time to make adjustments to the manufacturing equipment for product updates.
Comments
I wonder if Mr. Michel will take unpaid leave, as well? While the furlough might not sit well with employees, I'm sure they are still thankful to have jobs.
Help us Obama - please take over Club Car and save our jobs. With your help, you will not only save our jobs in Columbia County, but will stimulate more jobs at Club Car. How about buying a fleet of Club Car golfcarts to drive around D.C. They are green cars - no gas - just right!
I hate this for anybody to have to go through. I think that Club Car should sell off some of its inventory at greatly reduced prices to generate revenue. If you ride out past all of their buildings back by Jones Creek they have an ENORMOUS inventory just setting there. I don't work there, but it seems that the same carts are in the same spot week in and week out. Seems logical to me.
Kennametal has been doing this for the last few months. Every month salaried employees since March have been taking a week off, including top managers, without pay. Now they are facing 10-15% pay cuts.
ez- go is doing the same thing but their's is 3 weeks. so consider you self lucky.
I think all companys are starting this as a trend, which they have too. Morris had to reduce pay. It is better than not having any job at all.
So much for all the jobs to be saved or created under the present administration. I just read where he'll bypass congress on another issue and just sign an edict as if he were king...
As to the furlough issue, at least there will be jobs when the people return and also they don't have to take two weeks in a row . That does show Club Car's concern for their workers.
In response to the question of wheather Mr. Michel will also be taking unpaid leave, I can tell you on good authority that he will be doing just that. Not only that, all of the senior management (which I am not a part of) will be taking the two weeks of unpaid leave.
Now what we need is for CONGRESS to take a few months off. We would ALL be in better shape by the time they got back. They are NOT needed, that's for sure. We have enough laws on the books now and too few judges and courts to enforce them as it is.
Gulfstream in Savannah is also doing this. Most workers have to take a 5 week furlough. Most departments are shutting down the last week in June and the whole month of July. You have no choice in when you take the furlough. It is definitely better than losing your job.
Where is Tom Grant to slam Club Car, just like he does the Augusta Chronicle? Oh, he was fired, i forgot.....Go Metro.
Where is Tom Grant to slam Club Car, just like he does the Augusta Chronicle? Oh, he was fired, i forgot.....Go Metro.
Oh My.......are we stimulated yet?.........baaa..baaa..baaaa
Nice idea about selling off inventory at reduced prices, but that will not generate profitable revenue, only cash. An action like that would probably have worse impact on the financial picture as it would generate losses that would have to be made up. Furloughs, while not pleasant, are actually a fair way to maintain employment levels and not give people reduced pay. At least, they do not cut the base pay and people get "something" for their pay cut in the form of time off. I don't work at Club Car, but I am in business and this is a fair approach in my mind.
Tom Grant got fired?
Let's make one thing clear. The company is still generating benefits probably. This shenanigan is just about increasing profits, not saving jobs. "It's all about the shareholders". Which happen to be a bunch of mutual funds actually. So nobody is really in charge, just the market is, whoever that may be. Of course IR's CEO is getting his millions.
But hey, what goes around...comes around when the economy picks up and the company is unable to take advantage of any recovery.
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